NEW DELHI: Polaris Financial Technology Ltd rallied over 15 per cent in mid-morning trade on Friday on reports that the company is in talks to sell its IT services unit.

The two companies which are in race of acquiring the IT unit are Tech Mahindra and L&T Infotech. L&T Infotech has placed a $330-million offer while Tech Mahindra's bid is more than $350 million, TNN reported.

However, both the offers, have come below the asking valuation of $400-450 million, said sources familiar with the matter, added the report.

At 12:30 p.m.; Polaris Financial Technology was trading 12.2 per cent higher at Rs 134.90. It hit a low of Rs 121 and a high of Rs 138.40 in trade today.

Tech Mahindra was trading 1.5 per cent higher at Rs 939.35 and L&T was up 0.4 per cent to trade at Rs 1434.55.